Exam 2: Basic Managerial Accounting Concepts

Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31: In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200.Hendrix & Franks Co.sold 27,500 units of product during the year at a sales price of $5.25 per unit. - What was the amount of cost of goods sold for the year?

Cost is a dollar measure of the resources used to achieve a given benefit.

Property taxes on a factory building would normally be classified as a fixed cost.

Knowles & Foreman Company took the following data from its income statement at the end of the current year: - What was gross margin for the year?

Any costs associated with storing, selling, and delivering the product are classified as product costs.

Wright & Boyle Inc.had the following income statement for the month of May: - What was the sales revenue percent?

Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31: In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200.Hendrix & Franks Co.sold 27,500 units of product during the year at a sales price of $5.25 per unit. - What was the operating income (loss) for the year?

Organizations that produce products are called _______________________.

Select the appropriate definition of each of the items listed below. -Gross margin − selling and administrative expenses

Select the appropriate classification for each of the following costs. -Research and development costs

An income statement of a manufacturer

_____________________ is the way that a cost is linked to some cost object.

Select the appropriate classification for each of the items listed below. -Cost of nails used by a home builder

Select the appropriate definition for each of the items listed below. -A benefit given up when one alternative is chosen over another

All product costs other than direct materials and indirect labor are called overhead.

Select the appropriate classification of the output generated by each of the following industries. -Fast food restaurant

Select the appropriate classification for each of the following costs. -Cost accountant's salary

The ____________________________ represents that total product cost of goods completed during the current period and transferred to finished goods inventory.

Which of the following is an example of a service?

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -factory supplies